Sam Altman, the former CEO of OpenAI, may have found a loophole to profit from the company despite reportedly having no equity. Recent reports from Wired indicate that Altman would benefit from an OpenAI deal to purchase AI chips. It has been revealed that OpenAI signed a previously undisclosed agreement in 2019 to spend $51 million on advanced chips from a startup in which Altman has a personal investment.
Altman’s extensive web of private business interests could be one of the underlying reasons for his recent firing by OpenAI’s board. While the board cited Altman’s inconsistent candor and hindrance to the safe development of artificial general intelligence as the cause, the true motives behind his dismissal remain unclear. Altman has since been reinstated as CEO, while the board that terminated him has been replaced.
The startup in question, Rain AI, specializes in building computer chips that mimic the human brain. These chips, known as neuromorphic processing units (NPUs), are expected to revolutionize the field of AI and are claimed to be 100 times more powerful than Nvidia’s GPUs, which are currently utilized by OpenAI and Microsoft. Although NPUs are not yet available on the market, OpenAI has secured a deal for exclusive access.
Documents indicate that Altman personally invested over $1 million in Rain AI in 2018, and he is listed as a supporter on the company’s website. Altman’s involvement in dozens of startups is not limited to Rain AI. Previously heading the startup incubator Y Combinator, Altman has established himself as one of Silicon Valley’s most prominent dealmakers.
Recent developments within Rain AI have further heightened the drama surrounding Altman’s business connections. The Biden administration compelled a Saudi venture capital firm to divest its $25 million stake in Rain AI. Additionally, Rain AI’s founder and CEO, Gordon Wilson, resigned without providing a specific reason. Wilson’s resignation coincided with Altman’s reinstatement at OpenAI.
While the precise nature of Altman’s firing from OpenAI remains undisclosed, Helen Toner, a former board member who participated in the termination, shed some light on the matter when she resigned. In a tweet on November 29, Toner stated that Altman’s dismissal was not related to impeding OpenAI’s progress towards artificial general intelligence. Instead, it seemingly revolved around the board’s ability to effectively oversee the company, suggesting that matters of business disclosures were at the forefront, rather than advancements in AGI.
As the investigation into Sam Altman’s firing continues, the blurred lines between his private investments and OpenAI’s business dealings emerge as a potential catalyst for his removal. Despite the lack of a clear explanation from the board, the extent of Altman’s involvement in Rain AI and other startups raises questions about conflicts of interest. Only time will reveal the true nature of Altman’s actions and the ultimate impact on OpenAI’s operations.
